James F. Casey Associate Professor of Economics and Environmental Studies Williams School of Commerce, Economics and Politics Washington and Lee University

Beyond Copenhagen What happened? Copenhagen Accord 2 °C a global temperature guardrail commitment to significant funding for developing nations targets from all of the major emitters, including emerging economies. Where are we going? Cancun, Mexico Expiration of the Kyoto treaty in 2012 Cap or a Price?

My Humble Opinion BRIC countries, OECD countries, Everybody else

Adaptation Change is already occurring – how will we adapt? Sea level Agriculture Extreme weather events it will cost $75 - $100 billion each year (in developing countries)to adapt to climate change from 2010 to 2050 (The World Bank).

Mitigation $78b to $106b/year to 2020 to reduce carbon emissions 20%, (McKinsey). CCS – carbon capture and storage Reduce deforestation Alternative energy

Moral Imperatives ’Climate change is one of the greatest challenges facing humanity, and it is the world’s most vulnerable populations who are most immediately at risk. The actions of the wealthiest nations—those generating the vast majority of greenhouse gases—have tangible consequences for people in the rest of the world, especially in the poorest nations.’ Michael R. Bloomberg Mayor of the City of New York The world’s poor and future generations cannot afford the complacency and prevarication that continues to characterize international negotiations on climate change. ( United Nations) “the cost of stabilization can be limited to around one percent of global GDP a year” – Sir Nicholas Stern

Domestic Policy Cap and Trade The idea Set a limit on CO2 emissions Issue permits (Auction) Allow trading The reality Limits will be influenced by politics Permits allocation subject to politics Supply and demand uncertainty (price fluctuations)

Again, My Humble Opinion Tax CO2 emissions $5/Ton $50/Ton The Pigou Club

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